“Apple doesn’t necessarily need to use a streaming service to create revenue,” Daniel B. Kline writes for The Motley Fool. “It needs one to make upgrading your iPhone more attractive.”
“Apple hasn’t revealed many details of its upcoming Apple TV+ streaming video service,” Kline writes. “With Disney+ launching at $6.99 a month with multiple Marvel shows, a Star Wars series (with a second to come), and the entire Disney children’s catalog, there’s really no price point where Apple can compete. That’s why the company shouldn’t try to. It should focus on having a few shows and movies that people want to watch and then give the service away to users of its latest devices.”
“The video service could create that upgrade desire. Apple could make its streaming offering free for users on the latest version of iOS,” Kline writes. “If that version only works well (or at all) on newer phones, then getting access to top-tier free content might help push consumers to upgrade sooner.”
Read more in the full article here.
MacDailyNews Take: Speeding up the rate of iPhone and iPad replacements would massively move the needle for Apple, easily generating far more revenue than new content investments require.
When buying a Mac, iPhone, iPad, Apple TV, etc. gets you access to FREE exclusive hit series and other content, Apple’s so-called “competitors” will be deer in the headlights, with nothing to offer but their typical Apple knockoff products. They’ll then be forced to sign deals with other outlets to offer free NON-EXCLUSIVE content that can be found elsewhere.
Apple devices sales will increase, meaning the install base will increase, meaning Apple Services will increase and the cost of exclusive original content will bar the low-margin fragmandroid bottom-of-the-barrel scrapers from ever following. Hey Haw! — MacDailyNews, October 10, 2018
SEE ALSO:
More U.S. households now subscribe to streaming services than cable/satellite TV – March 19, 2019
Apple is ready to unveil their big bet on television – March 19, 2019
Netflix won’t take part in Apple’s upgraded TV app – March 18, 2019
Apple’s original content: Free to owners of Apple devices – March 18, 2019
Analyst: Apple is planning to give billions of dollars in video content away for free – March 18, 2019
Apple patent application for Apple TV interface reveals aspects of live TV streaming service – February 5, 2019
Apple’s deep bench of original programming continues to grow – January 18, 2019
Apple plans to give away original content for free to device owners as part of new digital TV strategy – October 10, 2018
[Thanks to MacDailyNews Readers “Fred Mertz” and “Judge Bork” for the heads up.]
Wow. I can’t believe this… I’m actually agreeing with an analyst!
It’s funny how these analysts seem to think that they know better than Apple in how to run Apple. We’ve seen and heard this before from all spectrum of analyses. Yet, each time, Apple shows them that they know what they are doing. Granted Apple is not perfect, but, no company is.
not only anal-ysts but also tim cook bashers, they know EVERYTHING
Very happy with my iPhone 6 Plus. (My wife thinks hers is beginning to have some issues though). We took advantage of the discounted battery replacement program. I HONESTLY do not see any reason to upgrade.
Full disclosure. I am a Apple fan who has gotten more and more upset with Apple under Tim Cook. I do not like the direction Apple hardware is going. (The latest Mac mini was a welcome surprise though.) I also believe the subscription model only really benefits Apple rather than us the users. Finally there is nothing wrong with wires. Prefer a physical connection rather than Bluetooth any day. (Bring back the headphone jack. ).
All of the reasons above are why I am holding on to my older hardware. That and the rising costs of the hardware itself. Would be happy to pay more for hardware and software that just worked and that I liked. Glad we purchased 4 new Apple keyboards back in the day when they had the nice chicklet keys. We are still using 2 of the 4 today. The other two are unopened in one of our closets.
Even if Apple does well, it will never be valued much higher than it is. Apple simply won’t be given the benefit of the doubt that it can succeed in streaming video content. Analysts continue to say that Apple doesn’t stand a chance against Netflix, Amazon or even Disney. Apple’s streaming service may be profitable but all Wall Street cares about is subscriber growth and I’m not sure Apple can get that. With so much competition, it’s hard for me to say. Because I’m an Amazon Prime member, all I need is Prime Video and that’s more than enough content for me. Amazon has plenty of original programming to watch and there’s also plenty of foreign films and science material.
I don’t believe Apple streaming content will drive a significant amount of hardware upgrades. Even if it does, it won’t cause consumers to switch platforms. Apple will never gain market share against Android if that’s what shareholders are hoping for. Most consumers only want low-cost products and Apple won’t provide that. Anyway, that’s just my opinion as a long-term Apple shareholder.
Netflix and Amazon have huge catalogs, infrastructure and translator communities of their own, and Disney at this point may be difficult to catch for Apple with their content consisting of not just their own original content, but also owning Star Wars, X-Men, Fox TV & Movies, and a majority share of Hulu. Apple has not committed enough resources outside of marketing and attempting to create content yet to truly compete against any of them.
Apple’s move to have a ‘preview’ channel on YouTube was a good idea considering that their potential reach otherwise for viewers would have been severely limited to iOS/Mac and lost in the forest of Amazon’s video offerings for Amazon customers.
Not sure how some users will feel if their OS is artificially restricted to put pressure on them to upgrade. As the person above relates some people like older hardware for specific reasons of taste and if they can be updated to the latest software it should be able to. I would much prefer To retain the freedom to pay for such a service than be cut out with no choice other than to be forced to buy a product unwillingly or be bore I wish to. IPad is a very telling case of this potential problem as updates have been negligent until recently.
Sounds like a lackluster attempt into the video streaming business. I don’t smell any desire to win and be the best. So DOA….
If they really want to win and be market leader Apple should acquire Disney…or Netflix IMHO.